JPMorgan buys its own Carta

Banking giant JPMorgan said Tuesday it will acquire Global Shares, an Ireland-based share-plan management software maker.

The deal is valued at around $750 million, Barron's reports, citing a source.

Why it matters: As the private markets balloon, banks are increasingly engaging earlier and earlier in the company lifecycle, with share-plan management tech being one of the services that help them do so.

• Global Shares has a client base of over 600 corporate clients that range from early-stage start-ups to mature multinational public corporations, per a JP Morgan press release.

Context: Investment banking rival Morgan Stanley in 2019 announced it would acquire Solium, a stock plan management company, for about $900 million. The business was later rebranded Shareworks.

• By acquiring a stock plan management tech company, a bank can more effectively offer clients a holistic service and cross-sell their various verticals.
• Case in point: Morgan Stanley led Palantir's direct listing in 2020 as an investment bank, and also used its Shareworks platform to help sell employee shares as part of the offering.
• The rise in share-based compensation has also helped fuel a bevy of private share-management startups serving the startup world, like Carta and Pulley.